In a sign of the changing times, the Chennai-based Sundaram Finance, a traditional non-banking finance company, has bought a stake in Delhi-based GyanDhan, an online marketplace for education loans for students aspiring to study abroad. GyanDhan, founded by two IIT alumni, uses proprietary logic to underwrite large ticket education loans. It has helped over 250 students get loans of around ₹60 crore. This investment made through its subsidiary Sundaram Finance Holdings is part of Sundaram Finance’s strategy to engage with start-ups in financial services and financial technology.
Sundaram Finance Group is looking to make investments as when the opportunities arise. It will be through minority stakes in early-stage ventures with ticket sizes of about ₹6.5 crore ($1 million) or less, though the amount can be higher if needed. The group is also looking to co-invest with like-minded venture capitalists and angel investors in this space.